Bitcoin (BTC) remains below $80,000 due to ongoing geopolitical tensions in the Middle East, pressure on risky assets, and the US market holiday.
In this case, the billion-dollar outflows from spot Bitcoin ETFs over two consecutive weeks also played a role, while one analyst noted that institutional demand in the market has not disappeared.
Speaking to The Block, BRN research head Timothy Misir argued that the stagnant prices seen amid increased institutional capital outflows from Bitcoin and Ethereum ETFs are more influential than an uptrend.
“Corporate demand is still ongoing,” the analyst said, adding, “In fact, corporate demand hasn’t disappeared, it’s just shifting.”
According to BRN analyst Misir, while spot Bitcoin and Ethereum ETFs experienced pullbacks, XRP ETFs attracted $22 million in inflows, Solana (SOL) ETFs $16 million, and the newly launched Hyperliquid (HYPE) ETFs $72 million.
At this point, according to the data, a large amount of funds are flowing out of BTC and ETH ETFs, while funds are flowing into the HYPE ETF.
Bitcoin ETFs saw outflows of over $1 billion last week, while Ethereum ETFs experienced outflows of $215 million, with funds shifting to select altcoin ETFs including HYPE, XRP, and SOL.
Specifically, the spot HYPE ETFs from Bitwise and 21Shares attracted approximately $72.38 million in inflows.
XRP and SOL ETFs also saw inflows of $22 million and $15.6 million, respectively.
Market analysts note that investors are reducing their positions in major cryptocurrencies and reallocating capital to projects with new narratives and higher potential profitability.
Finally, crypto analyst Sykodelic argues that if Bitcoin holds the $74,400 support level, June will be an uptrend. According to the analyst, Bitcoin closed last week above $74,400, demonstrating that it maintains its medium-to-long-term bullish structure. He suggests that if the support around $74,400 holds, the price could rise above $90,000 due to short position liquidations and a new wave of liquidity.
However, the analyst notes that a short-term correction is still possible this week, arguing that the uptrend could strengthen further in June and that the macro bottom for BTC has already formed at the $60,000 level.
*This is not investment advice.